DailyFinance.comhttp://www.dailyfinance.comDailyFinance.comhttp://o.aolcdn.com/os/df/2013/img/2-dailyfinance_logo_m.pngDailyFinance.comhttp://www.dailyfinance.comen-usCopyright 2015 Weblogs, Inc. The contents of this feed are available for non-commercial use only.Blogsmith http://www.blogsmith.com/How I Fund My Holiday Budget With Credit Card Rewardshttp://www.dailyfinance.com/2014/12/04/holiday-budget-credit-card-rewards/http://www.dailyfinance.com/2014/12/04/holiday-budget-credit-card-rewards/http://www.dailyfinance.com/2014/12/04/holiday-budget-credit-card-rewards/#commentsFiled under: Holiday Shopping, Credit Cards, Shopping, How to Save Moneyshutterstock

The average U.S. shopper expects to spend about $718 on holiday gifts this year, according to Accenture's 2014 Holiday Shopping Survey, but unless you're a dumpster-diving enthusiast, it can be difficult to avoid the pinch that the shopping season puts on your budget. Although I'd never brave the lines on Black Friday just to get a deal, buying presents at full price doesn't sit well with me and it hasn't for the past few years.

Instead, I use a couple of cash-back programs, in which I accumulate nearly $400 annually. I apply these earned points toward holiday gifts, which keeps out-of-pocket expenses low and circumvents the holiday debt hangover that's so fondly discussed come January.

Filling Up on Credit Card Rewards

My daily commute is about 64 miles round trip. Even with my fuel-efficient car, I spend a considerable amount on gas alone. About one year into this commute, I decided to make the best of my situation by getting paid in the form of cash back rewards. I found an unbeatable credit card offer that gave me 5 percent cash back per dollar on gas, 3 percent on groceries and 1 percent on other purchases -- the 20,000 bonus credit (equivalent to $250) upon sign up sweetened the deal, too.

Within the first three months of using the card exclusively for gas and groceries, I accumulated $350 in credit card rewards redeemable for a gift card. This, along with a $25 cash-back gift card I obtained through a (now-defunct) cash back debit card program, brought my brother's SLR camera bundle from an already reduced $486.05 to $111, after applying $375 in cash back credit. Granted, this purchase was a bit extravagant, but saving 77 percent of the total cost helped ease the blow.

After all, I'm spending the money regardless, so I might as well earn cash back.

From that moment on, I knew I was on to something. The signup bonus propelled me to reaching the $350 mark quickly, but since that was a one-time offer, I decided to use my rewards card for all my spending needs, instead of limiting charge to gas and groceries. After all, I'm spending the money regardless, so I might as well earn cash back.

These days my credit card's point exchange rate has changed a bit, with a $250 gift card requiring some 29,000 points to redeem instead of 25,000 like when I first signed up. This year, I've already cashed in my points for a $300 Visa (V) gift card.

My vehicle also qualifies for a manufacturer lifetime mileage reimbursement program, due to inflated MPG figures. As long as I own the car, I receive a gift card refund based on the amount of miles I've driven and the average cost of gas in my area. To add to my cash-back income over the holidays, I allow my accrued reimbursement amount to accumulate all year, which typically amounts to about $140.

3 Holiday Shopping Tips Using Rewards Points

Successfully funding your holiday shopping with rewards credit card points requires precision year round, as charging every purchase on a credit card can easily get out of hand. Here are a few ways I maintain the balance between earning points and saving money.

Avoid surprise credit card balances. I never purchase more than I can afford to pay back, but that doesn't mean seeing a credit card statement with a $2,000 balance doesn't make me queasy -- and nervous. To minimize any surprises, I always make sure to check my recent account transactions to ensure all charges are legitimate. I also make a milestone payment toward my balance immediately after every paycheck as an added check-in.

Don't lose out on sales Love it or hate it, retail stores use Thanksgiving weekend to ramp up on discounts and free shipping incentives to increase their revenue. If you keep your blinders on and focus on only purchasing the items on your gift list, you can use this time as an opportunity to save money. But timing is everything -- always verify how long the free shipping option will take to receive any gift cards you've redeemed. I always redeem cash back points about two weeks before the Thanksgiving weekend to ensure I have the funds to support my shopping trips.

Don't limit your options If you found a tempting holiday deal at Target (TGT), you may think redeeming a Target gift card makes sense. In reality, purchasing retail-branded gift cards in lieu of a Visa or MasterCard (MA) gift card cuts your options short. What if the item is out of stock and rain checks aren't available, or you found a better deal closer to the holidays-- do yourself a courtesy and don't lock yourself down to one store.

Anyone who has planned or will plan a wedding can empathize with the horror of seeing expenses creep over their budget. The Knot revealed that the average 2013 wedding cost $29,858 -- and that's not including honeymoon expenses. In my hometown, Los Angeles, the average cost to host a wedding is $38,735 -- and that only makes it the 11th most expensive place in the U.S. to get married, according to the survey.

My wedding isn't until November 2015, but my fiance and I mapped out a 27-month engagement that would give us time save money for the event. Like any newly engaged couple, we asked ourselves how much we were willing to spend on our big day, but we knew that our large Filipino families would expect us to extend invitations to distant relatives and friends with six degrees of separation from us. My mom's contribution to the list of guests we needed to invite, for example, included one of her high school friends, that friend's entire family and her friend's daughter's long-term boyfriend.

Some friends recommended that we dodge a traditional wedding by eloping on the cheap. This would save us from spending the equivalent of a home down payment on a single night, but we knew the importance of tempering family cultural expectations with our modest budget.

At this point, we've locked in the venue and most of our primary vendors. But along the way, I've encountered more than a few surprises and budget-busters.

According to Trulia's February Rent Vs. Buy Report, it's still cheaper to buy a home than rent in all 100 of the country's largest metropolitan areas. In Detroit, for example, it's 66 percent cheaper to buy than rent.

Saving up a standard 20 percent down payment for your next home will likely require extreme effort. You'll need $42,000 for the down payment for the average $212,000 U.S. home. Here are some ideas:

1. Cut the Cost of Where You Rent

To alleviate finances each month, consider a smaller or cheaper apartment. You could go a step further by getting a roommate, which would cut your rent by half, saving you hundreds of dollars each month that you could target toward your down payment. Go even further by moving in with your parents or other relatives for reduced or free -- depending on your family dynamics -- housing.

2. Get a Deal from a Bank

Some banks' programs for first-time home buyers allow you to make a much smaller down payment than the standard 20 percent. "Banks need to -- and are -- playing a role in providing sustainable homeownership by working with housing groups and agencies about opportunities that are available," said Malcolm Hollensteiner, director of retail lending at TD Bank (TD).

TD Bank's Right Step mortgage program provides qualified buyers with financing of up to 97 percent of the purchase price, without the private mortgage insurance requirement that traditional FHA mortgage loans have. But the biggest draw is a low 3 percent down payment option.

Anytime I shop online, for example, I always search for coupon codes in advance. By spending two minutes looking for a discount code, I saved over $50 on my last online purchase. Whether you downgrade your car or your cable, there are a host of practical ways to dedicate more of your income to building up your down payment.

5. Lower Your Debt

"Saving a down payment has always been one of the primary challenges for home ownership, especially with millennials who have student loans and consumer debt," said Hollensteiner.

Always make sure you consider how much money you'd truly save by taking advantage of a credit card promotion. Zero-percent credit card offers that encourage you to transfer existing balances may require a transfer fee, based on a percentage of your total balance. Furthermore, always be aware of when promotional zero-percent interest rate offers expire and determine what your standard interest rate will be beyond the limited time offer.

6. Consider Private Mortgage Insurance

Home buyers who don't meet low-income requirements for special mortgage programs and don't have the 20 percent down payment can get private mortgage insurance. Lenders use PMI to protect themselves if borrowers default on their mortgage loan payments.

PMI is based on the loan amount and the size of the down payment provided. Typically, the PMI rate ranges between 0.5 to 1.15 percent of the loan -- a considerable expense each month. The estimated PMI cost for a $212,000 home with a $20,000 down payment, for example, would eat up about $93 monthly ($1,116 per year) from a borrower's budget. Opting to pay a PMI premium is an alternative to fronting a standard 20 percent down payment; however, it's important to remember that the lenders are the sole beneficiary of this added expense, and buyers ultimately pay more for their home purchase.

]]>20sbuying a housedown paymentfamily moneyfirst homefirst houserenting an apartmentroommatessaving moneyJennifer CaloniaMon, 08 Sep 2014 09:54:00 EST3 Financial Struggles I Faced as a First-Generation Americanhttp://www.dailyfinance.com/2014/07/04/financial-struggles-first-generation-american/http://www.dailyfinance.com/2014/07/04/financial-struggles-first-generation-american/http://www.dailyfinance.com/2014/07/04/financial-struggles-first-generation-american/#commentsFiled under: Family Money, Personal Finance, Financial EducationNick Jene/Alamy
This holiday weekend will be my 28th year celebrating our country's success at achieving independence. My family migrated to the States in the 1980s, but I'm a first-generation Filipino-American, born and raised here.

In school, I was taught about the rights and freedoms that were proclaimed on that first Independence Day, but I had to learn the importance of other freedoms -- like financial freedom -- on my own. And the financial advice I got from my native Filipino relatives didn't really fill in the gaps for me.

Considering that there are currently more than 19 million first-generation Americans, according to a 2013 Pew Research study, I'm not alone in having to navigate the financial challenges of being sandwiched between two cultures. Here are three that were especially tough for me to overcome as the first U.S.-born member of my family.

1. Finding Cash for College

My parents and family insisted on me getting an good education. Throughout my childhood, I was told that a college degree -- specifically one that would lead me to a career in medicine or law -- would be my gateway to a successful life. As a kid, I bought into that notion, and had aspirations to become a pediatrician, but at 10 years old, I didn't fully understand the financial implications of that educational path.

I didn't have a 529 savings plan to fund my tuition. And while my parents worked hard to ensure I grew up in a healthy, safe environment, they didn't have the resources to support me during college. Nor did they know the ins-and-outs of where to find financial aid.

I recall sitting at the dining table at 1 a.m. on a school night during my last semester of high school, trying to complete my Free Application for Federal Student Aid. Since my parents had no experience in the process, I singlehandedly reviewed my parents' income tax returns, calculated assets and muddled through the night with my face buried in paperwork.

2. Navigating the Contradictions of the American Dream

Growing up, I heard stories from my grandparents, aunts and uncles about how hard life was back in their native country, and how some people there assumed that anyone in the U.S. had the means to buy luxury cars and lavish homes. My first experience visiting the Philippines confirmed the prevalence of this idealized notion of the American lifestyle.

At the time, I was a part-time college student making $10 an hour. My budget was so tight that I could only afford to bring $50 as spending money for the entire trip. Nonetheless, a distant relative literally put her hand out asking for a monetary gift upon meeting me for the first time.

She knew I was a student and didn't have a full-time job, but what she didn't know was that I was $25,000 deep in student loan debt, had $2,000 in credit card debt and couldn't even afford to buy a beater car to get around. It was at that moment that I learned how disconnected the foreign perception of the American dream can be to the cost-of-living realities Americans face daily.

3. Learning by Trial and Error

The financial advice my parents were firmest about was to avoid credit cards, because they'd had to file for bankruptcy. It was the most significant personal experience they had to offer about money management.

Unfortunately, in my house, discussions about money were very polarized -- either I should behave one way, or shouldn't -- but there was no conversation about how to improve upon my parents' experiences. So there were no talks about the pros and cons of credit card use, or how to be responsible with debt, or even what it meant to have a line of credit. All of those lessons, I had to pick up along the way, without my family's help.

Juanita Rodriguez of Los Angeles can also relate to the challenges of being a first-generation American. Her father emigrated from Mexico when he was 5 years old, and her mother came to the U.S. at 21 with a deeply ingrained Salvadoran culture to lean on. Raised at the intersection of three cultures, she found that she often had no other option but to guess almost blindly when facing common American financial dilemmas.

"I think the biggest obstacle [first-generation Americans] face is the 'unknown,' the 'never experienced,'" Rodriguez said. "In a way, we are an extension of our parents' immigration to this wonderful country, just finding our way through trial and error. This makes our path blurry and difficult, but it reminds us of our parents' desire to never give up and look towards that brighter future."

Jennifer Calonia is the editorial manager for GOBankingRates.com, a national personal finance site that connects consumers with the best banks, credit unions, interest rates and personal finance information today. Follow her on Twitter @Go_Jenn.